The Scourge of Russian DisinformationThursday, September 14, 2017
Russian disinformation is a grave transnational threat, facilitating unacceptable aggression by Russia both at home and across the 57-nation OSCE region. Russian disinformation helps support rampant violations of OSCE norms by the Putin regime, ranging from internal human rights abuses to military intervention in neighboring states to interference in elections in several countries. On Thursday, September 14, 2017, the U.S. Helsinki Commission held a hearing on Russian disinformation in the OSCE region. Sen. Cory Gardner (CO) presided over the hearing on behalf of Commission Chairman Sen. Robert Wicker (MS). Witnesses included Mr. John F. Lansing, CEO and Director of the Broadcasting Board of Governors; Ms. Molly McKew, CEO of Fianna Strategies; and Ms. Melissa Hooper, Director of Human Rights and Civil Society Programs at Human Rights First. In his opening statement, Sen. Gardner described the serious threat that Russian disinformation poses to the liberal international order, and underscored “how it undermines the security and human rights of people in the OSCE region.” Russia’s goal, he said, is “to sow fear, discord, and paralysis that undermines democratic institutions and weakens critical Western alliances such as NATO and the EU.” Ranking Member Sen. Ben Cardin (MD) highlighted the impact of Russian disinformation campaigns in Ukraine in conjunction with the recent invasions of Crimea and the Donbas. He also noted the extent of Russian efforts to influence the 2016 presidential election in the United States, and observed that such disinformation campaigns take advantage of our democratic institutions to advance Russia’s strategic agenda. Helsinki Commission Co-Chairman Rep. Chris Smith (NJ-04) characterized Russia’s disinformation efforts as a part of a strategy of “hybrid war,” and emphasized the need for the United States and its allies to develop counter-disinformation strategies as part of a “hybrid defense.” Mr. Lansing, the first witness to testify, outlined the structure and scope of the BBG’s broadcasting operations, and the role it plays in countering disinformation abroad. “The Russian strategy seeks to destroy the very idea of an objective, verifiable set of facts,” he said. “The BBG is adapting to meet this challenge head on by offering audiences an alternative to Russian disinformation in the form of objective, independent, and professional news and information.” He also described the BBG’s recent expansion of programming in the Post-Soviet space, and its flagship Russian-language program "Current Time," launched in February 2017. In her testimony, Ms. McKew described Russia’s disinformation campaign as “the core component of a war being waged by the Russian state against the West, and against the United States in particular.” She noted, “These manipulations don’t create tendencies or traits in our societies. They elevate, exploit, and distort divides and grievances that already are present.” She also emphasized the need for a coordinated response from the United States Government and its allies, and proposed an increased role for the U.S. military in countering disinformation. Ms. Hooper reminded the Commission that, while Russian disinformation has taken center stage in recent U.S. policy debates, it is only one of many methods employed by the Russian government to advance its agenda. “It’s part of a coordinated effort to disrupt and attack liberal norms wherever the opportunity arises using economic influence, electoral disruption, [and] the weakening of multilateral institutions,” she said. She also discussed the upcoming German parliamentary elections, and the potential for disinformation to influence its outcome. She commended the German government’s efforts to warn the public about disinformation, but criticized recent legislation that would increase censorship on social media. In response to a question from Sen. Gardner, Ms. Hooper noted that countering disinformation requires more than fact-checking false claims, and emphasized the need for a strategy of proactive narrative communication. Rep. Gwen Moore (WI-04) concurred with Ms. McKew’s statement that, in order to combat the threat of Russian disinformation, it is necessary for the Administration and Congress to come to a consensus on the existence of Russian meddling in the 2016 campaign. Sen. Sheldon Whitehouse (RI) inquired about the potential for Russian influence in upcoming elections by means of anonymous campaign spending, and about the role that the international banking system plays in sustaining corruption in Russia and neighboring states. Rep. Smith and Sen. Jeanne Shaheen (NH) sought the witnesses’ opinions on the recent news that Russian state-owned networks RT and Sputnik are being investigated for possible violations of the Foreign Agents Registration Act (FARA). Ms. McKew spoke in favor of stricter enforcement of FARA, while Mr. Lansing responded that he has concerns about retaliatory restrictions on U.S.-funded media in Russia. “I believe that this disinformation is one of the biggest threats that our democracy faces today,” said Sen. Shaheen. “This is a threat to the foundations of American democracy. It has nothing to do with Republicans and Democrats.”
Democratic Elections in the OSCE RegionTuesday, September 12, 2017
From September 11 to September 22, 2017, the OSCE participating States meet in Warsaw, Poland, for the Human Dimension Implementation Meeting (HDIM). The HDIM is Europe’s largest annual human rights event. Over the course of two weeks, the 57 participating States will discuss compliance with consensus-based commitments on full range of fundamental freedoms, democracy, tolerance and nondiscrimination, and humanitarian concerns. In the 1990 Copenhagen Document, the OSCE participating States adopted, by consensus, watershed commitments on free and fair elections. They stated that the participating States: “. . . solemnly declare that among those elements of justice which are essential to the full expression of the inherent dignity and of the equal and inalienable rights of all human beings are the following: [ . . . ] — free elections that will be held at reasonable intervals by secret ballot or by equivalent free voting procedure, under conditions which ensure in practice the free expression of the opinion of the electors in the choice of their representatives; [ . . . ] — a clear separation between the State and political parties; in particular, political parties will not be merged with the State;” Accordingly, the participating States rejected the concept of a one-party state or “modified” democracy (e.g., communist- or socialist-democracy). In a summit held later that year, the OSCE Heads of State or Government declared, “We undertake to build, consolidate and strengthen democracy as the only system of government of our nations.” In spite of the OSCE commitment to hold free and fair elections, some OSCE participating States have demonstrated even more resistance—if not complete unwillingness—to hold free and fair elections. In a few, a transfer of power is more likely to be the result of death than an election. In some cases, a generation has come of age under a single ruler or ruling family. Download the full report to learn more. Download highlights of conclusions and recommendations drawn from OSCE election reports (October 2016 to September 2017). Contributors: Robert Hand, Senior Policy Advisor, Janice Helwig, Representative of the Helsinki Commission to the U.S. Mission to the OSCE, Everett Price, Senior Policy Advisor, Scott Rauland, Senior State Department Advisor, Erika Schlager, Counsel for International Law, and John Engelken, Intern
Russian Disinformation Focus of Upcoming Helsinki Commission HearingThursday, September 07, 2017
WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: THE SCOURGE OF RUSSIAN DISINFORMATION Thursday, September 14, 2017 9:30 AM Dirksen Senate Office Building Room 562 Live Webcast: http://www.senate.gov/isvp/?type=live&comm=csce&filename=csce091417 Russian disinformation is a grave transnational threat, facilitating unacceptable aggression by Russia both at home and across the 57-nation OSCE region. Russian disinformation helps support rampant violations of OSCE norms by the Putin regime, ranging from internal human rights abuses to military intervention in neighboring states to interference in elections in several countries. The hearing will examine Russia’s efforts to spread disinformation, both domestically and abroad, as well as U.S. efforts to set the record straight with Russians, Ukrainians, and other speakers of Russian in the region. Witnesses will also discuss the effectiveness of U.S. counter-measures across a variety of platforms; whether resources available correspond to the threat; and whether coordination amongst key players within the U.S. Government at the Department of State, Department of Defense, and USAID, and with European partners is adequate. Finally, with German elections scheduled for September 24, one of the witnesses will highlight attempts by Russia to use NGOs and think tanks in Germany to try to influence the outcome. The following witnesses are scheduled to testify: John F. Lansing, Chief Executive Officer and Director, Broadcasting Board of Governors (BBG) Melissa Hooper, Director of Human Rights and Civil Society Programs, Human Rights First Molly McKew, CEO, Fianna Strategies
The 2017 Human Dimension Implementation Meeting: An OverviewFriday, August 18, 2017
Each year,1 the OSCE Office for Democratic Institutions and Human Rights (ODIHR) organizes the Human Dimension Implementation Meeting (HDIM) in Warsaw, Poland. As Europe’s largest annual human rights conference, the HDIM brings together hundreds of government and nongovernmental representatives, international experts, and human rights activists for two weeks to review OSCE human rights commitments and progress. The 2017 HDIM will be held from September 11 to September 22. Human Dimension Implementation Meeting 2017 The HDIM allows participating States to assess one another’s implementation of OSCE human dimension commitments, identify challenges, and make recommendations for improvement. The HDIM agenda covers all human dimension commitments, including freedoms of expression and the media, peaceful assembly and association, and religion or belief; democratic elections; the rule of law; tolerance and non-discrimination; combating trafficking in persons; women’s rights; and national minorities, including Roma. Each year, three special topics are selected for a full-day review. 2017 special topics will be 1) ensuring “equal enjoyment of rates and participation in political and public life,” 2) “tolerance and nondiscrimination,” and 3) “economic, social and cultural rights as an answer to rising inequalities.” This year’s meeting will take place at the Warsaw National Stadium (PGE Narodowy), the site of the NATO summit earlier this year. The meeting will be webcast live. Background on the Human Dimension Implementation Meeting When the Helsinki Final Act was signed in Finland in 1975, it enshrined among its ten Principles Guiding Relations between Participating States (the Decalogue) a commitment to "respect human rights and fundamental freedoms, including the freedom of thought, conscience, religion or belief, for all without distinction as to race, sex, language or religion" (Principle VII). In addition, the Final Act included a section on cooperation regarding humanitarian concerns, including transnational human contacts, information, culture and education. The phrase “human dimension” was coined to describe the OSCE norms and activities related to fundamental freedoms, democracy (such as free elections, the rule of law, and independence of the judiciary), humanitarian concerns (such as trafficking in human beings and refugees), and concerns relating to tolerance and nondiscrimination (e.g., countering anti-Semitism and racism). One of the innovations of the Helsinki Final Act was agreement to review the implementation of agreed commitments while considering the negotiation of new ones. Between 1975 and 1992, implementation review took place in the context of periodic “Follow-up Meetings” as well as smaller specialized meetings focused on specific subjects. The OSCE participating States established permanent institutions in the early 1990s. In 1992, they agreed to hold periodic Human Dimension Implementation Meetings” to foster compliance with agreed-upon principles on democracy and human rights. Additional changes to the modalities for the HDIM were agreed in 1998, 2001, and 2002, which included shortening the meeting from three weeks to two weeks, and adding three “Supplementary Human Dimension Meetings” annually on subjects selected by the Chairmanship-in-Office on particularly timely or time-sensitive issues. One of the most notable features of the HDIM is the strong participation of non-governmental organizations. The United States has been a strong advocate for the involvement of NGOs in the HDIM, recognizing the vital role that civil society plays in human rights and democracy-building initiatives. OSCE modalities allow NGO representatives to raise issues of concern directly with government representatives, both by speaking during the formal working sessions of the HDIM and by organizing side events that examine specific issues in greater detail. 1 In exceptional years when the OSCE participating States hold a summit of heads of state or government, the annual review of human dimension commitments is included as part of the Review Conference which precedes the summit, and also includes a review of the political-military and economic/environmental dimensions.
Beyond Pipelines: Breaking Russia’s Grip on Post-Soviet Energy SecurityThursday, August 10, 2017
By Paul Massaro, Policy Advisor, and Andras Olah, Intern In 2007, the Helsinki Commission held a hearing titled “Pipeline Politics: Achieving Energy Security in the OSCE Region,” which focused on energy security in Post-Soviet Eastern Europe. The hearing took place in the wake of the first major Ukrainian-Russian gas dispute in 2006 that demonstrated not only the Kremlin’s willingness to use its energy resources as a weapon to meddle in its immediate neighbors’ domestic affairs, but also the extreme dependency of much of Europe on Russia’s energy supplies. At the time, experts and policymakers focused primarily on the enhancement of security of supply through the construction of new energy infrastructure, including pipelines, which would allow the diversification of energy imports of countries in the OSCE region. Ten years later, the energy landscape of the world fundamentally has changed. As Peter Doran, the Executive Vice President of the Center for European Policy Analysis (CEPA), stressed at a July 2017 Helsinki Commission briefing titled “Energy (In)security in Russia’s Periphery,” new energy infrastructure been built and the regulatory environment of the EU’s energy sector has significantly improved. At the same time, the shale gas revolution in the United States and the simultaneous development of a global liquid natural gas (LNG) market offers European gas consumers more alternative options to Russian gas imports than ever before. Most countries in Central and Eastern Europe have improved their energy security by the implementation of crucial reforms in their energy sectors. For example, in Ukraine, where for a long time “energy oligarchs” profiting from dodgy gas deals with Gazprom torpedoed any meaningful reform initiatives, a recent landmark decision has eliminated energy subsidies that have been a lucrative source of corruption for decades. However, Moscow has resisted surrendering its monopolistic market position and is fighting back through politically motivated energy projects designed to exploit the fault lines between European countries’ differing energy policies. The most important Kremlin-sponsored projects to date have been the planned Nord Stream 2 and TurkStream pipelines, which will carry gas to EU countries by circumventing Russia’s immediate post-Soviet neighbors. According to Doran, the Kremlin aims to end the role that neighbors like Ukraine, and to a lesser extent Moldova, currently play in the transit of gas to the EU through the Brotherhood and the Trans-Balkan pipelines. The success of Nord Stream 2 potentially could result in the loss of billions of dollars in transit revenues for Ukraine and Moldova, as well as diminishing their geopolitical importance for Europe, while subsequently enabling Russia to reassert its old influence over them by exploiting their diminished energy security. As a result of massive infrastructure projects promoted by the EU to develop reverse flow capacities on existing pipelines and create new interconnections, Ukraine is now capable of purchasing gas from a Western direction and, for the first time, since November 2015 has ceased buying gas contractually from Russia altogether. New pipeline infrastructure projects, namely the planned expansion of the Iaşi-Ungheni pipeline, as Lyndon Allin, Associate at Baker Mackenzie, pointed out at the same briefing, might enable Moldova in the medium-run as well to reduce its dependence on Russian gas that currently constitutes almost a 100% of its total gas consumption. Nevertheless, the effectiveness and profitability of these regional gas transit systems could be severely endangered once the transit of gas is diverted to other pipelines, potentially hampering the prospects of further gas infrastructure modernization, which is necessary for both countries to ensure their energy security. Moreover, as both ‘Stream projects’ would circumvent the region, Russian gas could become the only one that can be bought from the east as well as the west direction, strengthening Gazprom’s monopolistic market position in the region. While political leaders on both sides of the Atlantic have been pushing recently for the introduction of U.S. LNG to the region to serve as a new ‘external solution’ to the above mentioned challenges, as Edward Chow, Senior Fellow at the Center for Strategic and International Studies (CSIS), noted at the briefing, the main challenge for post-Soviet Eastern European countries remains an internal one. While the level of energy infrastructure might already be close to sufficient, the biggest problem for post-Soviet countries remains the underdeveloped nature of their energy sectors that lack harmonized and stable regulations, consistently-applied property rights, and transparency. Additionally, as Dr. Mamuka Tsereteli, Senior Fellow of the Central Asia – Caucasus Institute pointed out, energy security could not be achieved without high-levels of cross-border market integration, even if physical infrastructures are in place. The underdeveloped nature of post-Soviet Eastern European countries’ energy sectors has been having a severe impact on the energy security of those states, in particular of Ukraine, which could be easily self-sufficient—even without the import of U.S. LNG—in natural gas if private investment was not being discouraged by the opaque, uncompetitive, and corrupt nature of its energy sector. Once the right regulatory environment is established, Ukraine, for instance, could possess an immense gas transmission and storage infrastructure that, if properly upgraded, as well as connected to the energy networks of Central European countries, could lead to the establishment of a highly liquid East Central European gas trading hub with a spot-based gas trade. This could create increased energy security in the entire region by improving both the level of competition and the diversification of supplies. While the West could offer the countries of post-Soviet Eastern Europe, Ukraine and Moldova in particular, alternative energy sources (e.g. U.S. LNG), these should and could not serve as a substitute for structural reforms and capacity-building, which are ultimately necessary to achieve true energy security in the region.
Journalists Persecuted 2017: Illustrative CasesWednesday, August 02, 2017
By Jordan Warlick, Staff Associate Natasha Blaskovich, Intern Katya Kazmin, Intern With a section on the “improvement of working conditions for journalists”, the Helsinki Final Act explicitly recognizes the importance of journalists for democratic and open societies. Despite the signing of the agreement in 1975, the situation for journalists is still very grim in several countries in the region. The U.S. Helsinki Commission continues to monitor these conditions closely and remains concerned with: (a) murder, violence, and other egregious acts that harm the safety of journalists; (b) imprisonment of journalists for their work; (c) other restrictions that impede the work of journalists and a free press. The journalists featured below are representative of those persecuted so far this year. Afqan Muxtarli (Azerbaijan) – Muxtarli and his family fled to neighboring Georgia in 2015 after Muxtarli received threats related to corruption investigations into Azerbaijani President Ilham Aliyev and other officials. Following Muxtarli’s disappearance on May 29, 2017, Muxtarli’s lawyer told Radio Free Europe that the journalist was abducted in Tbilisi and handed over to Azerbaijani officers at the border. Muxtarli believes that these officers planted €10,000 on him and then promptly arrested him, in order to incriminate him for illegally crossing the border with a large sum of money and no passport. Amnesty International and other international human rights organizations have criticized the Azerbaijani government for its oppression of journalists and suppression of free speech. Georgia’s Interior Minister has stated that Georgia has launched an investigation into this allegedly unlawful imprisonment. Mehman Huseynov (Azerbaijan) – Huseynov, a well-known journalist and blogger in Azerbaijan, was sentenced to two years in prison on March 3, 2017 on defamation charges. Huseynov had been under a travel ban since 2012, and was reportedly harassed and intimidated by the police for years. In early January 2017, Huseynov was arrested in Baku, taken to the Nasimi police station where he was held incommunicado, and repeatedly beaten and abused. Although he filed a formal complaint with the prosecutor’s office and made his abuse public, Huseynov’s allegations were declared groundless and not investigated. Huseynov was accused of defamation by the Nasimi police chief, and was found guilty in May 2017. Halina Abakunchyk (Belarus) – Abakunchyk is a correspondent for Radio Free Europe/Radio Liberty (RFE/RL), a U.S.-government-funded service. She was detained overnight on March 12, 2017, accused of “participating in an unsanctioned rally,” and then fined approximately $300 for covering large nationwide protests in March over a tax on the unemployed. Abakunchyk was one of 32 journalists arrested and/or fined for similar offenses while covering the protests. Zhanbolat Mamay (Kazakhstan) – Mamay is the editor of the Tribuna newspaper, one of the few independent papers in Kazakhstan to have survived a recent trend of pressure and harassment from the government. Arrested on February 10, 2017, Mamay stands accused of being an accomplice to money-laundering, along with opposition leader and former head of BTA Bank, Mukhtar Ablyazov, in 2009. Before his arrest, Mamay told RFE/RL that he felt he was being followed. Since his arrest, Mamay has complained of being beaten and extorted while in prison. There are concerns for the safety of Mamay and his family as well as the provision of a fair trial. The Committee to Protect Journalists and other organizations have called for his release. Nikolai Andrushchenko (Russia) – Andrushchenko was a Russian journalist known for reporting on issues provocative to the Russian regime, including corruption. When Andrushchenko was attacked by assailants in St. Petersburg on March 9, 2017, he was in the midst of investigating reports of corruption and human rights abuses, allegations including the involvement of local police. He was found unconscious several hours later and taken to a hospital where brain surgery was performed, leaving him in a coma. He died on April 19, 2017. Prior to the March 9 attack, Andrushchenko had been attacked at least two times in the last decade. In November 2016, assailants attacked him on his doorstep. He was also attacked in November 2007, weeks before he was jailed for two months on false charges of defamation and obstruction of justice. The police have not informed the newspaper which Andrushchenko co-founded, Novy Peterburg (New Petersburg), of any progress in the investigation. Dmitry Popkov (Russia) – Popkov, the chief editor of local independent newspaper Ton-M in Siberia, was found shot dead in his backyard in Minusinsk on May 24, 2017. Popkov was known for investigating alleged abuses of power and corruption. Ton-M’s motto, “We write what other people stay silent about,” made the newspaper – and Popkov himself – long-time targets. Shortly before his murder, Popkov had published reports regarding a federal parliamentary audit that revealed corruption in the local administration. An investigation has been launched by the regional branch of Russia’s Investigative Committee and Popkov’s journalism is being treated as a potential motive for the murder. Nur Ener (Turkey) – Ener, a journalist for the daily Yeni Asya, was detained by police after they raided her apartment in the middle of the night on March 3, 2017. Accused of being affiliated with the Fethullah Gülen network, Ener’s formal charges are unknown to her lawyer and she is allowed only 45 minutes of family visits a week and one hour with her lawyer. A former roommate of Ener, who was arrested after the July 2016 coup attempt, is said to have given Ener’s name to the police in the aftermath of the coup. Some of Ener’s critical reporting, including an interview where the guest criticized certain government policies, may have also been a reason for her arrest. According to the Committee to Project Journalists, Ener is one of over 80 journalists imprisoned in Turkey – the largest jailer of journalists in the world. Oguz Guven (Turkey) – Guven is the website editor-in-chief of Cumhuriyet daily. He was detained on May 12, 2017 for spreading terrorist propaganda, a popular charge against journalists in Turkey. The arrest allegedly was prompted by the newspaper’s tweet about the death of Mustafa Alper, a senior Turkish prosecutor involved in prosecuting suspects in the July 2016 coup attempt. Cumhuriyet has come under extreme pressure from the Turkish government, with 17 journalists and board members standing trial on July 24. Guven and his colleagues could face prison sentences as long as 43 years. Stanyslav Aseyev (Ukraine) – Aseyev, a freelance journalist who contributed to Radio Free Europe/Radio Liberty under the name Stanyslav Vasin, has been missing from Donetsk since June 3, 2017. On July 16, Yehor Firsov, a former Ukrainian lawmaker and close friend of Aseyev, said he received information through unofficial sources that the journalist was detained by pro-Russian separatists. Aseyev allegedly faces charges of espionage by the self-proclaimed Donetsk People’s Republic (DNR), who have threatened him with up to 14 years’ imprisonment. Other journalists highlighted in Political Prisoners in Russia: Mykola Semena (Ukraine) – Semena, a Crimean journalist, has been charged under Article 280.1 of Russia’s criminal code, which penalizes "public calls for actions violating the territorial integrity of the Russian Federation." The law was added to the Russian criminal code in December 2013, and came into force in May 2014 - several weeks after Crimea was annexed by Russia. Semena was one of the only independent journalists to remain on the peninsula following Russia’s March 2014 annexation of Crimea. He contributed reporting to RFE/RL’s Ukrainian Service and its Crimea Desk. On April 19, 2016, after Russian police searched Semena’s home and confiscated computers and storage media, the de facto Crimean prosecutor-general ordered Semena to remain on the peninsula while he was investigated for alleged “calls to undermine Russia’s territorial integrity via the mass media.” Semena has been forced to stay in Crimea ever since, despite his requests to travel to Kyiv for urgently needed medical care. Semena’s trial has been adjourned and delayed several times this year. If he is found guilty, he could face five years in prison. Roman Sushchenko (Ukraine) – Sushchenko, a Ukrainian journalist, is charged under article 276 of Russia’s criminal code (espionage). He has worked as a Paris-based correspondent for Ukraine’s state news agency, Ukrinform, since 2010. He was detained at a Moscow airport on September 30, 2016, upon his arrival from Paris on private business. He was accused of collecting classified information on the activities of Russia’s armed forces and the National Guard. Mr. Sushchenko denies any involvement in espionage. His employer, Ukrinform, also considers the accusations false and called his detention a “planned provocation.” Mr. Sushchenko’s attorney is Mark Feygin, who previously represented Pussy Riot and Nadezhda Savchenko. Sushchenko’s pre-trial detention has been extended several times by the Lefortovsky District Court of Moscow since his arrest, and is currently set until September 30, 2017. Photos Cited: Afqan Muxtarli: Facebook Mehman Huseynov: Facebook Halina Abakunchyk: RFE/RL Zhanbolat Mamay: RFE/RL Nikolai Andrushchenko: RFE/RL Dmitry Popkov: TON-M Nur Ener: Platform for Independent Journalism (P24) Oguz Guven: Twitter Stanyslav Aseyev: RFE/RL
Democracy in Central & Eastern EuropeWednesday, July 26, 2017
On July 26, 2017, the U.S. Helsinki Commission held a briefing on “Democracy in Central and Eastern Europe: Renewing the Promise of Democratic Transitions.” This briefing followed a series of roundtable discussions and other events earlier in the year relating to this region, demonstrating the Helsinki Commission’s interest in Central and Eastern Europe. Erika Schlager, Counsel for International Law for the U.S. Helsinki Commission, welcomed panelists Andrew Wilson, the Managing Director of the Center for International Private Enterprise (CIPE); Peter Goliaš, Director of the Institute for Economic and Social Reforms in Slovakia; András Lőke, Chair of Transparency International in Hungary; and Marek Tatała, Vice-President of the Civil Development Forum in Poland. Jan Surotchak, Regional Director for Europe at the International Republican Institute (IRI), and Jonathan Katz, Senior Resident Fellow at the German Marshall Fund of the United States (GMF) added Washington policy perspectives. The discussion was moderated by Martina Hrvolova, Central Europe and the Balkans Program Officer at CIPE. The panelists provided a background on democracy in the regional context, as well as on the specific case studies of Slovakia, Hungary and Poland. Andrew Wilson observed that new democracies of Central and Eastern Europe face serious stresses that raise questions about the resilience of their democratic transitions and threaten to undo the remarkable progress the countries made during the last three decades. He argued that the problems in the region do not stem from the failure of democracy, but rather a failure to more actively pursue its consolidation. Peter Goliaš offered a brief overview of the current state of democracy in Slovakia. He described the findings of a recent public opinion poll that paint a very bleak picture of how Slovakians see the current state of democracy in their country. He argued that a main reason for people’s dissatisfaction with democracy has been the perception that politicians do not work in the public’s interest, but in the interest of the oligarchs. He projected that current political trends will lead to the continued slow deterioration of Slovak democracy. To stop this deterioration, Goliaš proposed several short- and long-term measures that he believes would strengthen the rule of law and civil society in Slovakia. András Lőke cited the reports of several influential NGOs to describe the current state of Hungarian democracy. While both Freedom House and Transparency International still give moderate scores to Hungary on the level of freedom and corruption, Hungary is trending downward on every indicator that were examined. Lőke argued that the most telling figures were found in the World Economic Forum’s Global Competitiveness Report, which ranked Hungary very poorly based on an assessment of the rule of law and the level of corruption. After identifying the challenges facing Hungary today, Lőke outlined a list of solutions to these problems that would ultimately enable civil society to reassert its role in maintaining transparency and accountability in governance, and generally increase the crucial engagement of civil society in public affairs. Marek Tatała assessed the state of democracy in Poland, arguing that while the country remains a democracy, its current political leadership is weakening rather than strengthening its democratic development. Tatała observed that laws on the constitutional tribunal and on the organization of courts, and the rapid nature of the legislative process, have been harmful to the rule of law in Poland. He underlined the need for a higher level of engagement of the business community in public affairs, and a better quality of education that is more focused on civic engagement and economic literacy. Following up on the three country case studies, Jan Surotchak presented the findings of a recent poll conducted as part of IRI’s Beacon Project. The findings revealed a number of disturbing trends in Central and Eastern Europe, including waning support for core transatlantic institutions; tensions over the nature of European identity; and a deep discontent with socioeconomic challenges in the region. Most importantly, the study confirmed that there is a strong correlation between socioeconomic disparities in these countries and their vulnerabilities to Russian influence. Finally, Jonathan Katz emphasized the need to increase the United States’ bilateral and joint diplomatic engagement and development assistance efforts in the region to support continued democratic and economic transition. More specifically, Katz presented four core strategies that he argues are needed, which included the establishment of joint US-EU mechanisms to strengthen development cooperation and coordination in the entire OSCE region. The panelists agreed that any external development assistance should primarily support the work of civil society in Central and Eastern Europe, with a special focus on communication campaigns. Particular emphasis should be given to the improvement of the education system with a focus on promoting discussions with students. Marek Tatała also argued that given the fairly strong ties of these countries’ leaders with the United States, a stronger voice from the current US Administration regarding negative developments in Slovakia, Hungary, and Poland would be also welcome and effective. With regard to action from Congress, panelists argued that resources for development assistance could come in the form of a congressional authorization bill. Panelists also noted that to be effective, any external development fund that targets NGOs or the civil society must be monitored by donors to avoid corruption. Panelists observed that the Congress could play a particularly important role in providing oversight of such assistance programs and making sure that their spending follow very strict guidelines.
Kleptocrats of the Kremlin: Ties Between Business and Power in RussiaThursday, July 20, 2017
On July 20, 2017, the U.S. Commission on Security and Cooperation in Europe held a staff-led briefing on Russian kleptocracy. Panelists included Brian Whitmore, Author of the Power Vertical Blog and Senior Russia Analyst at Radio Free Europe; Ilya Zaslavskiy, Research Expert at the Free Russia Foundation and Academy Associate with Chatham House; Dr. Anders Aslund, Senior Fellow at the Atlantic Council and Professor at Georgetown University; Marius Laurinavicius, Senior Analyst at the Vilnius Institute for Policy Analysis and a former Fellow with the Hudson Institute; and Ambassador Daniel Fried, Distinguished Fellow at the Atlantic Council and former Coordinator on Sanctions Policy at the US Department of State. The discussion, which was covered by C-SPAN 1, was moderated by Paul Massaro, Helsinki Commission Policy Advisor on Economic and Environmental Issues. Whitmore provided an insightful overview, explaining how kleptocracy ensures the control of loyal elites while simultaneously providing the Kremlin with a tool of statecraft internationally. In a compelling argument, he compared corruption with communism, as the Kremlin's use of kleptocracy is reminiscent of the use of communism as a tool for international influence during Soviet times. Zaslavskiy spoke about how the current regime took the worst but most practical lessons from the Communist party, the KGB, and organized crime, and amalgamated these practices into the corrupt system that exists today. Therefore, he rejected the term “oligarch,” deeming it irrelevant. This notion would assume that businesses act independently, when in reality, their operations depend on the Kremlin's approval. Dr. Aslund, in agreement with Zaslavskiy, concluded that oligarchy is over, as it has been assimilated by the state. He broke down the Kremlin's system of kleptocracy into four different aspects: firstly, the state institutions, the security agencies, and the judiciary; secondly, the state corporations; thirdly, President Putin's circle of loyal cronies who benefit from asset stripping and procurement contracts from the state; and lastly, the West. Western complicity is an essential aspect of Russian kleptocracy, as cronies take advantage of rule of law in the West to secure assets from the East. Dr. Aslund called for tougher measures to ensure transparency and beneficial ownership. Laurinavicius then joined in to provide a Baltic perspective, arguing that lessons can be learned from the three Baltic States, the front line in the fight against Russian kleptocracy. Laurinavicius argued that Putin's regime uses kleptocratic cronies to achieve goals that the state cannot achieve itself. He emphasized how the Baltic region has been a target of these kleptocratic tactics as early as 1991 in the immediate aftermath of the dissolution of the Soviet Union. Lastly, Ambassador Fried expanded on tools to combat kleptocracy. He cited journalistic exposure and governmental pressure as two critical aspects of a comprehensive strategy. Naming the Global Magnitsky Act as a legislative vehicle that allows lawmakers to go after Russian human rights abusers, Ambassador Fried called for additional legislation to target individuals complicit in Kremlin's system of kleptocracy. Ambassador Fried ended the panelists' testimonies on a hopeful note: "I do not believe that Russia is doomed to live forever its worst history. I don’t accept the notion of a civilizational divide. In Russian history, Russia does, when it fails at external aggression, turn to internal reform, and has sometimes been successful. And the period of Russian history we think of as the most successful, the period that gave us world-class literature and art and music, and a rapidly developing economy, and the beginning of a more modern economic system, came as a result of its – the failure of its aggression and failure in various wars – Crimean War, Russo-Japanese War. I mention this because it is important to remember what it is we are trying to achieve. We are not trying to achieve a weakening of Russia. We are trying to achieve a defeat of Putinist Russia, the better to have a better relationship with that better Russia."
One Year Later: Seeking Justice for Pavel SheremetThursday, July 20, 2017
When investigative journalist Pavel Sheremet died in a car explosion in central Kyiv on July 20, 2016, his assassination garnered global media attention. Upon learning the tragic news, then-OSCE Representative on Freedom of the Media Dunja Mijatović condemned the murder, saying, “This killing and its circumstances must be swiftly and thoroughly investigated, and the perpetrators brought to justice.” However, one year later, virtually no progress has been made on his case. Furthermore, the escalating harassment and attacks against journalists in Ukraine, coupled with a culture of impunity for perpetrators, is worrisome for Ukraine’s democratic future. To ensure they meet the aspirations of the Ukrainian people, authorities in Kiev must reaffirm their commitment to freedom of the press by ensuring the perpetrators of Sheremet’s murder—and similar cases of killing, assault, and harassment—are brought to justice. Download the full report to learn more. Contributors: Jordan Warlick, Office Director, and Amelie Rausing, Intern
Democracy in Central & Eastern Europe Focus of Upcoming Helsinki Commission BriefingTuesday, July 18, 2017
WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: DEMOCRACY IN CENTRAL AND EASTERN EUROPE: RENEWING THE PROMISE OF DEMOCRATIC TRANSITIONS Wednesday, July 26, 2017 2:00 PM to 4:00 PM Capitol Visitors Center Room SVC-215 Live Webcast: www.facebook.com/HelsinkiCommission In 1990, at a moment of historic transition, the countries of the Organization on Security and Cooperation in Europe adopted a watershed agreement recognizing the relationship between political pluralism and market economies. To advance both, they committed to fundamental principles regarding democracy, free elections, and the rule of law. In recent years, however, concerns have emerged about the health of the democratic transition in Central and Eastern Europe, particularly in the face of ongoing governance challenges and persistent corruption. At this briefing, speakers will examine the current state of democracy in Central and Eastern Europe and analyze efforts to address the region’s challenges. They will also discuss the declaration adopted on June 1 by civil society representatives, members of business communities, and others, which seeks to reinvigorate the region’s democratic trajectory, support democratic and economic reform, and strengthen the transatlantic partnership. The following panelists are scheduled to speak: Andrew Wilson, Managing Director, Center for International Private Enterprise Peter Golias, Director, Institute for Economic and Social Reforms, Slovakia Andras Loke, Chair, Transparency International, Hungary Marek Tatala, Vice-President, Civil Development Forum, Poland Additional comments will be provided by: Jan Surotchak, Regional Director for Europe, International Republican Institute Jonathan Katz, Senior Resident Fellow, German Marshall Fund
Helsinki Commission Announces Briefing on Kleptocracy in RussiaThursday, July 13, 2017
WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: KLEPTOCRATS OF THE KREMLIN: TIES BETWEEN BUSINESS AND POWER IN RUSSIA Thursday, July 20, 2017 3:30 PM – 5:00 PM Dirksen Senate Office Building Room G11 Live Webcast: www.facebook.com/HelsinkiCommission Eighteen years after he first took power, Vladimir Putin rules a Russia increasingly characterized by censorship, political repression, and human rights violations. A central feature of Putin’s authoritarian regime is sprawling corruption. This corruption undermines the legitimacy of public institutions domestically and internationally via an opaque network of interlocutors who enable assets to be stolen from the Russian people and hidden abroad. While the president is the primary beneficiary, the Kremlin’s brand of kleptocracy depends on a loyal group of cronies, who acquire untold wealth by ensuring that state institutions follow Kremlin directives, and that private businesses play along or stay out of the way. The briefing will examine the dynamics of Putin’s closest circle in order to establish who most strengthens and benefits from his rule. Additionally, briefers will analyze how these cronies advance Putin’s geopolitical goals and interests. The following panelists are scheduled to speak: Brian Whitmore, Senior Russia Analyst, Radio Free Europe Ilya Zaslavskiy, Research Expert, Free Russia Foundation Dr. Anders Aslund, Senior Fellow, Atlantic Council Marius Laurinavicius, Senior Analyst, Vilnius Institute for Policy Analysis Ambassador Daniel Fried, Distinguished Fellow, Atlantic Council
Energy (In)Security in Russia’s PeripheryThursday, July 13, 2017
On July 13, 2017, the U.S. Helsinki Commission held a briefing on “Energy (In)security in Russia’s Periphery.” Energy security is an important topic that belongs to the OSCE’s Second Dimension. This briefing addressed energy security challenges in Eastern Europe and the Caucasus, in particular in Ukraine, Moldova and Georgia. Panelists included Peter Doran, Executive Vice President and Interim Director at the Center for European Policy Analysis (CEPA); Edward Chow, Senior Fellow at the Energy and National Security Program of the Center for Strategic and International Studies (CSIS); Andrian Prokip, Senior Associate at the Kennan Institute of the Woodrow Wilson Center and Energy Expert at the Institute for Social and Economic Research; Lyndon Allin, Associate at Baker McKenzie; and Dr. Mamuka Tsereteli, Senior Fellow at the Central Asia-Caucasus Institute. The panelists provided a background on energy security both generally and in the regional context of the post-Soviet space, as well as in the specific case studies of Ukraine, Moldova and Georgia. Mr. Doran stated that the energy security situation in Europe, and also in Russia’s immediate neighborhood, has fundamentally changed as a result of the end of energy scarcity in the world and the construction of new energy infrastructure in Central and Eastern Europe in a positive way. However, the bad news is that Russia is not willing to accept this game-changing market shift and is fighting back. For instance, the panelists agreed on the key role that Azerbaijan could play for the supply of energy not only in the post-Soviet space, but also in other European countries. They noted, however, in order for world-class projects, like the ones operating or being planned in Azerbaijan, to become a reality, the achievement of market integration is critical. Unfortunately, market integration in Southeastern Europe is exactly what Russia has been trying to prevent with the tool of energy corruption, which it uses to keep its neighboring countries dependent on it for energy supplies, and to obtain kompromat on various political leaders in the region. Mr. Doran specifically cited the case of the Nord Stream 2 pipeline project, which he argued is a political and not a commercial project for Russia to gain more influence over European, and in particular Ukrainian, energy security. When it comes to ways of approaching energy security, panelists agreed that it must be achieved not by top-down but rather with bottom-up solutions, citing the specific example of Ukraine, which could easily become self-sufficient if it implemented crucial reforms that hinder much-needed private investment in its energy sector. In particular, Mr. Chow observed that, while external challenges must be confronted and overcome, the implementation of crucial structural reforms in the energy sectors of post-Soviet countries is critical to meet the challenge that Russia poses. For example, he regards corruption in the energy sector in Ukraine as the key reason for the nation’s energy insecurity. The panelists agreed that U.S. political leaders should be careful about making promises to politicians in the region, for example the oft-cited promise that U.S. LNG exports will be able to substitute for Russian gas and solve the energy security problems of the region. Instead, as the panelists pointed out, the emphasis should be put on supporting the energy market development of countries in the post-Soviet space. Mr. Prokip stressed that the recently proposed reforms in Ukraine must go forward. In particular, progress must be made in implementation, which he argued could only happen if the West is willing to exert more pressure on the Ukrainian authorities, while continuing to provide advice and assistance. In both Chow’s and Prokip’s view, U.S. energy exports cannot serve as a substitute for structural economic reforms in Ukraine. Following a similar line of argument, Mr. Allin pointed out that, in the case of Moldova, it is the Moldovans who need to make more effort to solve their own problems, rather than looking only to foreign partners for external solutions. Finally, Dr. Tsereteli reminded the audience that structural reforms and the openness to trade and investment that accompanies them can lead to post-Soviet countries’ integration in the global economic system, as was the case in Georgia, which managed to improve its energy security significantly this way.
Helsinki Commission Briefing to Examine Energy Security in Russia’s PeripheryMonday, July 03, 2017
WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following briefing: ENERGY (IN)SECURITY IN RUSSIA’S PERIPHERY July 13, 2017 3:30 PM – 5:00 PM Dirksen Senate Office Building Room G11 Under Vladimir Putin, Russia has used its neighbors’ dependence on its energy supplies as a source of geopolitical leverage and sought to keep their energy sectors underdeveloped and corrupt. Ukraine has recently managed to implement crucial reforms in its energy sector, but challenges remain. Meanwhile, initiatives for similar reforms in Moldova have stalled, while Georgia has successfully reformed its energy sector and developed new infrastructure. Why are these outcomes so different and what more can be done to achieve energy security in post-Soviet Eastern Europe? This briefing will provide a general overview of energy security in Ukraine, Moldova, and Georgia, and examine challenges and opportunities in the energy sectors of these states. Briefers will discuss the role that corruption plays in preventing the implementation of effective reforms as well as strategies to curb Russian influence. The following experts are scheduled to participate: Peter Doran, Executive Vice President and Interim Director, Center for European Policy Analysis (CEPA) Edward Chow, Senior Fellow, Energy and National Security Program, Center for Strategic and International Studies (CSIS) Andrian Prokip, Senior Associate, Kennan Institute; Energy Expert, Institute for Social and Economic Research Lyndon Allin, Associate, Baker McKenzie Mamuka Tsereteli, Senior Fellow, Central Asia-Caucasus Institute
2017 Trafficking in Persons Report – the OSCE RegionTuesday, June 27, 2017
Human trafficking remains a pressing human rights violation around the world with the International Labor Organization estimating that nearly 21 million people are enslaved at any given time, most of them women and children. As part of U.S. efforts to combat human trafficking, the U.S. Department of State today released the 2017 Trafficking in Persons Report (TIP Report), reflecting the efforts of 187 countries and territories to prosecute traffickers, prevent trafficking, and to identify and assist victims, as described by the Palermo Protocol to Prevent, Suppress and Punish Trafficking in Persons, especially Women and Children. Trafficking Victim Identification and Care: Regional Perspectives According to the new TIP Report, in the 2016 reporting year, countries in the OSCE region identified 304 more trafficking victims than in the previous year, for a total of 11,416 victims. This increase is particularly notable when compared to the East Asia and Pacific, Near East, South and Central Asia, and Western Hemisphere regions, where victim identification declined, but still maintained a generally upward trend over 2014. Trafficking victim identification and care is critical for proper management of refugee and migrant flows. In order to help law enforcement and border guards identify trafficking victims among the nearly 400,000 migrants and refugees entering the region last year, the OSCE Office to Monitor and Combat Trafficking in Human Beings launched a new project to conduct multiple trainings, including simulation exercises, through 2018. The first training in November 2016 included participants from 30 OSCE participating States. Victim identification and care are also critical for successful prosecutions. Nearly every region of the world saw a drop in prosecutions of human traffickers, but an increase in convictions in the 2016 reporting year. This trend may reflect a growing knowledge among prosecutors of how to successfully investigate and prosecute a trafficking case. It also may reflect an overall increase in trafficking victims who have been identified, permitted to remain in-country, and cared for such that the victims—now survivors—are ready, willing, and able to testify against their traffickers. Despite the dramatic decline in prosecutions (46 percent) in the OSCE region, convictions held steady at nearly the same numbers as the previous year. Individual Country Narratives Along with regional statistics, the TIP Report also provides individual country narratives, recommendations for the most urgent changes needed to eliminate human trafficking, and an assessment of whether the country is making significant efforts to meet the minimum standards for the elimination of human trafficking. Tier 1 countries meet the minimum standards for the elimination of human trafficking. Tier 2 countries do not yet meet the standards, but are making significant efforts to do so. Tier 2 Watch List countries do not meet the minimum standards and are making significant efforts to do so, but have a very large or increasing number of trafficking victims, have failed to demonstrate increasing efforts over the previous year, or lack a solid plan to take additional steps in the coming year. Tier 3 countries do not meet the minimum standards and are not making significant efforts to do so. Twenty-five OSCE participating States qualified for Tier 1 in the TIP Report. Nineteen participating States qualified for Tier 2, including Ukraine, which was upgraded this year after four years on the Tier 2 Watch List. Five participating States were designated for the Tier 2 Watch List, including Hungary, Moldova, Montenegro, Serbia, and Bulgaria.* Four participating States were on Tier 3, including Belarus, Russia, Turkmenistan, and Uzbekistan. States on Tier 3 may be subject to sanctions. Legislation authored by Helsinki Commission Co-Chairman Rep. Chris Smith—who also serves as the Special Representative for Human Trafficking Issues to the Organization for Security and Cooperation in Europe Parliamentary Assembly – requires the TIP Report to be produced every year. In recent years the report has also included an assessment of the United States. Since the inception of the report, more than 100 countries have written or amended their trafficking laws, with some nations openly crediting the report for inspiring progress in their countries’ fight against human trafficking. * OSCE participating States Andorra, Monaco, Lichtenstein, and San Marino are not included in the TIP Report.
The Romanian Anti-Corruption Process: Successes and ExcessesWednesday, June 14, 2017
Corruption is an issue of particular concern to the United States and the OSCE because of the threat it poses to security, economic development and human rights. Romania has a history of combating corruption since the fall of Communism, and to this day struggles to maintain transparency in its government institutions and businesses. The fight against corruption is the modern arena for the protection of democratic institutions and freedoms, which for Romania means the strengthening of its institutions and rule of law. The U.S. Helsinki Commission’s hearing on June 14, 2017, focused on Romania’s anti-corruption process, examining progress as well as recommendation for the United States to help support these goals. “Romania’s anti-corruption efforts have garnered international attention and have been held up as an example for other countries, such as Ukraine,” observed Chairman Wicker. “We want those efforts to be successful. In holding this hearing today, we hope to support those working to fight against corruption in a way that is consistent with the rule of law and strengthens the democracy Romanians have worked so hard to build.” Witnesses at the hearing included Ambassador Marc Gitenstein, former U.S. Ambassador to Romania from 2009 to 2012 and a partner at leading global law firm, Mayer Brown; Ms. Heather Conley, Senior Vice President for Europe, Eurasia, and the Arctic, and Director of the Europe Program at the Center for Strategic & International Studies; Mr. David Clark, a British foreign policy commentator and consultant with Shifting Grounds; and Mr. Philip Stephenson, Chairman of the Freedom Group and former partner of the International Equity Partners. Witnesses overwhelmingly stressed the need for continued anti-corruption work in Romania and made recommendations for strengthening and improving those efforts. In his opening statement, Ambassador Gitenstein conveyed his optimistic view of Romanian anticorruption efforts, and pointed to the recent mass demonstration in January of this year—the largest in Romania since 1989—as evidence of strong public support for continued progress. In this regard, he said Romania was a model for the region, and continues to meet benchmarks set by the Cooperation and Verification Mechanism (CVM) of the EU - a special monitoring mechanism established by the EU as a condition for Romania’s accession. Ms. Conley characterized the fight against corruption as “a matter of national security.” While echoing Ambassador Gitenstein’s optimism, she underlined that Romania is not done with its fight against corruption. She stated that the United States decreased the amount of assistance to Romania after the country’s accession to the EU and NATO, suggested that this was a mistake. “This is what leaving the policy playing field looks like,” Ms. Conley argued. She warned that allowing corruption to spread and create weaknesses within Romanian institutions would allow for future exploitation by Russia. Mr. David Clark expressed concern regarding several areas of Romania’s anti-corruption measures, which he said had been tainted by the politicization of justice, collusion between prosecutors and the executive branch, intelligence agency influence over the process, lack of judicial independence and other abuses of the process. He doubted the accuracy of the European Union’s CVM progress reports due to the Union’s “epic capacity for wishful thinking,” as evidenced by how slow the EU has been to respond to the serious deterioration of democratic standards in Hungary and Poland. He pointed to several troubling human rights violations in Romania and urged the Helsinki Commission to ask hard questions of the State Department and support better reporting on corruption issues in the annual State Department Country Reports on Human Rights. Mr. Phil Stephenson described his personal experience with the Romanian judicial system and his ongoing investigation by DICOTT, an antiterrorism organization in Romania, stating that “the fight against corruption itself has been corrupted.” He appreciated the attention that the Commission was bringing to the issue of corruption in Romania and argued that continued attention will protect against deficiencies in the anti-corruption process. Note: The unofficial transcript includes a Romanian translation.
Helsinki Commission to Hold Hearing on Romanian Anti-Corruption ProcessWednesday, June 07, 2017
WASHINGTON—The Commission on Security and Cooperation in Europe, also known as the Helsinki Commission, today announced the following hearing: THE ROMANIAN ANTI-CORRUPTION PROCESS: SUCCESSES AND EXCESSES Wednesday, June 14, 2017 9:30 AM Senate Visitors Center (SVC) Room 212-210 Live Webcast: http://www.senate.gov/isvp/?type=live&comm=csce&filename=csce061417 Since the fall of Communism, Romania’s greatest challenge has been the fight against corruption. This fight has largely succeeded, with powerful national-level prosecutors (the National Anticorruption Directorate) getting public support and scoring large numbers of convictions ranging from the level of local politicians to former Prime Ministers. However, two worrying trends have developed recently. First, in what was seen as an attempt to exempt government officials from prosecution, a move by the government to pardon government officials whose abuse of office caused damages of less than $47,000 led to the largest mass protests since 1989. Second, there are indications that some elements of the Romanian state, including possibly the security services, are using the necessary and popular fight against corruption as a pretext, in a few cases, to punish political opponents and expropriate business interests. The hearing will examine the current state of the Romanian anti-corruption process with goal of understanding its successes and excesses and how best to respond. The following witnesses are scheduled to testify: Ambassador Mark Gitenstein, Special Counsel, Mayer Brown Heather Conley, Senior Vice President, Center for Strategic and International Studies David Clark, Foreign Policy Commentator and Consultant Philip Stephenson, Chairman, Freedom Capital
Russia’s Weaponization of Corruption (and Western Complicity)Tuesday, June 06, 2017
By Paul Massaro, policy advisor and Amelie Rausing, intern Russia’s weaponization of corruption—its export of corrupt practices via the abuse of western legal and financial loopholes in order to further its geopolitical goals—has stimulated anti-American sentiment in Europe and galvanized extremist forces on both sides of the Atlantic. While Moscow pushes its anti-globalization narrative, it is simultaneously taking advantage of globalization to export its own version of crony capitalism to many countries in the OSCE region. The Russian brand of corruption thrives off of globalization and depends on access to the global financial system. Under this model, weak property rights and lack of rule of law support a corrupt system at home, where markets are distorted and courts are politicized. State funds are looted and assets are acquired through corporate raiding and asset stripping. Cronies then siphon off national funds to safe havens outside of former Soviet countries. Offshored money can be used to buy real estate, education, and health care in the United States and in Europe. It can also be used back home, to finance rigged elections, support local political figures, reward loyal cronies, and fund projects strategically important for geopolitical goals. Stolen money can also buy influence and keep foreign governments friendly. In the meantime, popular discontent brews domestically. Western politicians often argue that globalization undermines corruption and authoritarianism. In reality, that is not the whole story. The emergence of a parallel, opaque, financial system that allows dictators to anonymously and untraceably funnel money to the West is one of the direst consequences of an increasingly globalized world. European and American lawyers, bankers, lobbyists, and accountants provide services that facilitate and benefit from the laundering of stolen assets. Illicit wealth is then invested in real estate in cities like London, New York, and Miami. In many cases, victims are well aware of the West’s complicity in funneling off their hard-earned taxes and state budgets. Their sense of powerlessness is further fortified when the United States and European countries fail to trace and recover funds that have vanished in the global financial system. It strengthens the sense of a culture of impunity for grand corruption, a public setback that can then be exploited by extremist voices. In Russia, “Londongrad” is widely known as the capitol of Russia’s stolen wealth. Furthermore, in the digital era, stolen assets are flaunted on social media for everyone to see. Last year, reporters from the Organized Crime and Corruption Reporting Project (OCCRP) and Novaya Gazeta established that a 280-plus foot super-yacht named St. Princess Olga belonged to Putin crony and Rosneft CEO Igor Sechin after examining the social media accounts of his rumored girlfriend, Olga Rozhkova. While the exact price of the yacht is unknown, it is estimated to be around $190 million. At best, the United States and other Western countries are accused of facilitating the looting of corrupt countries. At worst, they drive and benefit from the transfer of financial assets from the East to the West. Disdain of the West becomes especially contagious when people like Russian opposition leader and anti-corruption blogger Alexei Navalny start to express frustration with Western complicity in money laundering. It is bad news when freedom fighters and dissidents, traditional allies of the United States, start to question the West’s commitment to democratic development. The failure to return ill-gotten assets, especially when they have been invested in the U.S. economy, diminishes the United States’ democratic legitimacy and America’s claim to be a champion of freedom. The perception of a hypocritical West with sham values is then exploited by opportunist politicians and media, who egg on anti-American sentiment with this carefully constructed narrative about globalization. This narrative fuels extremism and terrorism and it is in the United States’ national interest to encounter it. The Helsinki Commission recently investigated one aspect of this phenomenon in a staff-level briefing titled, “Countering Corruption in the OSCE Region: Returning Ill-Gotten Assets and Closing Safe Havens.” This briefing demonstrated that strengthening mechanisms for repatriation and accountability in the financial sector needs to be a priority. When these illicit assets are safeguarded in places where democratic governments have some leverage then it is important to use it to ensure the responsible return of funds for the benefit of victims. To avoid looking hypocritical, financial organizations and law firms that enable the looting cannot profit from the repatriation process. There are many different methods required to combat corruption and responsible asset recovery might not seem like the most critical at first glance. However, it is an essential step for preventing future corruption. Recovered assets can be invested in the rule of law and aspects of civil society that serve as corruption watchdogs. Responsible and transparent repatriation has the potential to empower these watchdog organizations, strengthening the backbone of democratic development.
Countering Corruption in the OSCE Region: Returning Ill-Gotten Assets and Closing Safe HavensThursday, June 01, 2017
The World Bank estimates that twenty to forty billion dollars are stolen from developing countries every year. The majority of stolen funds are never found, and even if they are, recovering stolen assets and repatriating victims is a complicated process. The process often involves many different countries with different legal frameworks and financial structures. On June 1, 2017, the Helsinki Commission held a briefing on asset recovery in the OSCE region. Ill-gotten assets from the region frequently end up in money laundering safe havens in the West, where Western financial services enable the safeguarding of stolen funds. Briefers included Charles Davidson, executive director of the Kleptocracy Initiative at the Hudson Institute; Brian Campbell, legal advisor for the Cotton Campaign; and Ken Hurwitz, senior managing legal officer on anti-corruption with the Open Society Justice Initiative. The briefing was moderated by Paul Massaro, economic and environmental policy advisor with the Helsinki Commission. Panelists at the briefing discussed methods to achieve responsible repatriation for grand corruption. After tracing and freezing assets, Western authorities are faced with the dilemma of how to return assets stolen by kleptocrats to the people of that country. A critical part of anti-corruption work, successful repatriation can empower civil society and democratic development in affected countries. In turn, civil society and the judiciary can play critical roles in fighting and exposing grand corruption. Panelists drew comparisons between the challenges associated with returning assets stolen by the Karimov regime in Uzbekistan and the successful case in Kazakhstan, where $115 million in disputed assets was returned to the people through the BOTA Foundation. While grand corruption takes on many different forms, most corrupt countries in the OSCE region are former members of the Soviet Union and have imported Moscow’s own brand of corruption. Panelists discussed how the lack of transparency and accountability in Western financial systems facilitate the looting of former Soviet countries. Additionally, they argued for the United States’ national interest in countering corruption and ensuring responsible repatriation.
Asset Recovery in OSCE Region to be Focus of Upcoming Helsinki Commission BriefingTuesday, May 23, 2017
WASHINGTON —The Commission on Security and Cooperation in Europe, also known as the U.S. Helsinki Commission, today announced the following staff-led briefing: "Countering Corruption in the OSCE Region: Returning Ill-Gotten Assets and Closing Safe Havens" Thursday, June 1, 2017 10:30 AM – 11:30 AM Dirksen Senate Office Building Room G11 Combating corruption has been an essential element of the work of the Organization for Security and Cooperation in Europe (OSCE) for decades. This has involved a multitude of activities, including the exchange of information to identify, trace, and suppress money laundering. But what happens with the corrupt assets recovered from such operations? This briefing will explore the historical context for asset recovery as an integral part of the global fight against corruption, with a special focus on the OSCE region. Briefers will discuss corruption prevention mechanisms in the OSCE and beyond, the U.S. national interest in countering corruption, and methods of ensuring responsible repatriation. The following experts are scheduled to participate: Charles Davidson, Executive Director of the Kleptocracy Initiative, Hudson Institute Brian Campbell, U.S.-based Attorney Ken Hurwitz, Senior Managing Legal Officer on Anticorruption, Open Society Justice Initiative Moderator: Paul Massaro, Policy Advisor, Helsinki Commission
Chairman Wicker Meets with Valentin Inzko, High Representative for Bosnia and HerzegovinaWednesday, May 17, 2017
On May 16, Austrian diplomat Valentin Inzko, the international community’s High Representative for Bosnia and Herzegovina since 2009, met with Senator Roger F. Wicker, Chairman of the U.S. Helsinki Commission. Dr. Inzko was visiting Washington for consultations with the U.S. Administration and Members of Congress, prior to reporting to the United Nations Security Council on his work later in the week. The High Representative updated the Senator on the ongoing challenges in implementation of the 1995 Dayton Agreement, which ended a horrific conflict that began in Bosnia in April 1992. He indicated that nationalist sentiment continues to divide the country. As a result, efforts to achieve the country’s disintegration take place simultaneous to efforts to achieve the country’s integration into Europe. Inzko urged that the United States continue to actively engage in Bosnia and Herzegovina, noting U.S. credibility among local stakeholders and the European Union’s challenges in achieving any real progress on its own. Senator Wicker recalled the major U.S. commitment to Bosnia in the immediate post-Dayton period and asked what policy options are available today. Among the items discussed were the need to maintain active U.S. diplomatic representation in Bosnia, as well as the potential impact of sanctions or other actions against obstructionist political leaders. In January, the United States applied sanctions on Milorad Dodik, President of the Republika Srpska entity in Bosnia and Herzegovina, for obstructing Dayton implementation, thereby threatening the sovereignty and territorial integrity of the country. At a Commission hearing the next day on Russia's military threat to Europe, similar concerns were raised as expert witnesses indicated the Western Balkans were in “Russian crosshairs” to influence and destabilize. Russian influence is most visible in Serbia but also in Macedonia and Bosnia. It is particularly strong in the Republika Srpska entity, encouraging Dodik to pursue a secessionist agenda. Russian involvement in the attempted coup in Montenegro last October was also noted, just as the country was in the process of acceding to NATO. Through successive leaderships, the U.S. Helsinki Commission has been at the forefront of congressional efforts to support Bosnia and Herzegovina, not only in line with the terms of the 1995 Dayton Agreement but in compliance with the principles and provisions of the 1975 Helsinki Final Act and subsequent commitments of the OSCE.
The Long Arm of Injustice
In 2008, Igor and Irina Bitkov, along with their daughter Anastasia, fled Russia in fear for their lives. Having seen their successful company bankrupted in a textbook raider scheme, their daughter kidnapped and raped, and facing death threats, the Bitkovs took refuge and began a new life with new identities in Guatemala.
The family now finds itself separated, imprisoned in squalid Guatemalan jail cells, and facing nearly twenty years in prison for alleged paperwork irregularities normally punishable by a simple fine. There are grave reasons to question the role of the government of Russia and the UN’s International Commission against Impunity in Guatemala (CICIG) in their imprisonment.
“I am deeply concerned about grave injustices suffered by the Bitkov family—brutalized in Russia, now apparently re-victimized in Guatemala, where they languish in jail,” said Helsinki Commission Co-Chairman Rep. Chris Smith (NJ-04), who chaired the hearing. “Evidence indicating that the government of Russia may have enlisted the UN’s International Commission against Impunity in Guatemala to persecute this family is troubling and must be thoroughly scrutinized.”
The hearing sought answers to key questions: Did the Kremlin enlist CICIG in its vendetta to destroy the Bitkovs? Is this another example of the frightening reach of Putin’s government and its ability to co-opt institutions designed to further the rule of law, as it has Interpol and Mutual Legal Assistance Treaties? Has the government of Russia corrupted a UN anti-corruption agency? What does this teach about the government of Russia, the UN, and the global fight against the scourge of corruption?
The Helsinki Commission examined the specifics of the Bitkov case, including Russian influence on CICIG and Guatemala’s Attorney General’s office, and reviewed policy options to protect U.S. taxpayer-supported institutions from abuse and undue pressure from authoritarian governments.
Selection of Additional Materials Submitted for the Record
- Response of William Browder to Questions for the Record Submitted by Rep. James McGovern
- Report: CICIG and the Rule of Law | Ligo ProPatria, Instituto de Servicios a La Nacion, Guatemala Immortal, ProReforma
- Sign-On Letter to the Helsinki Commission | Civil Society Representatives
- Letter to the Helsinki Commission | Ligo ProPatria, Instituto de Servicios a La Nacion, Guatemala Immortal, ProReforma
- Letter to the Helsinki Commission | Migration Groups
- Letter to President Maldonado of Guatemala | Bill Browder
- Letter to President Maldonado of Guatemala | Helsinki Commission Chairman Sen. Roger Wicker
- Invitation to Ivan Velasquez to Testify at Helsinki Commission Hearing
- Communication from Loreto Ferrer, CICIG
- Letter to the Helsinki Commission | VTB Bank
- Information from RENAP
- Cover Notes from Aron Lindblom,Diakonia Guatemala, Regarding:
- Letter to the Helsinki Commission | Indigenous Ancestral Authorities of Guatemala
- Letter to the Helsinki Commission | Christian Council of Guatemala
- Letter to the Helsinki Commission | Asociation de Mujeres Q'eqchi'es Nuevo Horizonte
- Letter to the Helsinki Commission | Comite de Unidad Campesina Guatemala
- Letter to the Helsinki Commission | Asociation Grupo Integral de Mujeres Sanjuaneras
- The Wall Street Journal: Kremlin Revenge in Guatemala (March 25, 2018)
- The Wall Street Journal: Russia’s Dubious Guatemala Story (April 15, 2018)
- The Wall Street Journal: A Crisis in Guatemala, Abetted by the U.N. (April 22, 2018)
- National Review: Microscopic Dots. Let's Look at Them. (April 25, 2018)
- National Review: Why Are They Doing This to the Bitkovs? (April 26, 2018)
- The Economist: A corruption spat in Russia endangers crime-fighters in Central America (April 28, 2018)
- Materials submitted by Victoria Sandoval, criminal and human rights attorney representing the Bitkov family
- Audio: CICIG supports VTB petitions
- Affidavit: Harold Augusto Flores confesses that he was threatened by CICIG
- Medical reports on Anastasia Bitkova issued by the National Forensic Science Institute
- BBC: Inside the 'world's most dangerous' hospital
- Ruling issued by the tribunal presided over by Judge Iris Yassmin Barrios